News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
Diana Olick / CNBC / July 22, 2013
They swarmed the distressed housing market, buying thousands of foreclosed properties and pushing prices higher faster than anyone expected. Now investors are pulling back, dissuaded by the higher prices they themselves brought about.
“Perhaps the numbers aren’t working out,” said Lawrence Yun, chief economist of the National Association of Realtors, which reported that just 15 percent of June sales were by investors. That is the lowest share since the association began tracking this cohort in October 2008.
Current homeowners are now driving the housing market,
John Caulfield / BUILDER / July 22, 2013
Strengthen your balance sheet by dumping bad assets, says Alvarez & Marsal’s Andrew Hede.
Andrew Hede knows what it takes to get struggling builders back on their feet.
During the last housing recession, his company, the New York-based turnaround and interim management specialist Alvarez & Marsal, was one of the go-to counsels that builders sought when their businesses were plummeting downhill or had already hit bottom. Hede, a managing director with Alvarez & Marsal, served as chief restructuring officer for a number of builders that reorganized under Chapter 11Read More
Robbie Whelan and Dawn Wotapka / The Wall Street Journal / July 15, 2013
The nation’s biggest publicly traded home builders are on a buying spree, snapping up small privately held companies who made it through the housing slump but now are struggling to find financing.
Big builders are seeing their profits healthy and their homes selling at higher prices. For their smaller, privately owned competitors, times remain tough.
What sets the big builders apart is access to capital. The bond market has been kind to big builders, which issued a record $8.1 billion in bonds last year. Bond issues are on pace to have one of the strongest years ever this year, accordingRead More
BUILDER / July 9, 2013
Today’s big story is a second-half-of-2013 question raised by two other breaking news articles.
In one, Bloomberg/ BusinessWeek staffer’s Heather Perlberg and John Gittelsohn explore the strategy Blackstone Group is building out with its investment in the single-family for-rent market.
In the other, the Silicon Valley Business Journal’s Nathan Donato-Weinstein covers the IPO terms for San Jose, Calif.-based UCP, Inc. a land developer-builder seeking to raise $150 million or more in the equity capital markets.
One plan banks on a business that stakes its futureRead More
Luis Mejia, PPR / MULTIFAMILY EXECUTIVE / July 3, 2013
Recent multifamily investment volumes indicate an early but potentially growing emphasis on low-rating properties. Indeed, as the chart below shows, from the first quarter of 2010 through the first quarter of 2013, Class B and C sales transactions were substantially higher than those for Class A properties. (The data do not reflect the recent, $16 billion Archstone–AvalonBay–Equity Residential transaction, in order to avoid skewing the results.)
A further look at the Class A and B transactions shows that their shares have changed gradually over time. In 2010, following the recession,Read More